Companies use a lot of software – and that means purchasing a lot of software. Every department has its unique needs, whether that’s the latest project management platform, software engineering application, or sales generation service. All that software comes at a price, which is often quite high. For large corporations, it’s a one-two punch: they need more types of software, and they pay steeper prices because of the large number of employees who will be using it.

The financial burden of purchasing company software is heavy enough, but it gets even more expensive when companies struggle to keep up with all the new offerings on the market, with each new service promising better capabilities and more efficiency than their competitors. It’s easy for decision-makers to get lost in the sea of SaaS software and then over-purchase, or make suboptimal purchasing decisions that rapidly lead to the need for new software.

Buying software that doesn’t get used, or is minimally used, is such a common phenomenon that it has its own term – “shelfware”. That is, the software goes right on a (metaphorical) dusty old shelf and never sees the light of day. Shelfware is a big money sink for companies and, unfortunately for many, something that has become a bit of an accepted reality and part of the cost of doing business.

The issue is particularly salient when it comes to cybersecurity software. A 2015 survey by Osterman Research, sponsored by Trustwave, illustrated just how bad the problem is. In a report of 172 small-, medium- and large-sized enterprises, researchers found that those investing in new security controls often ended up underutilizing the technologies in which they just invested — or simply not using them at all. Indeed, a 451 Research report suggested that shelfware often resulted from over-hyped products, or solutions lacking features, and pointed to security information as the most underused technology. 

According to a 2019 Gartner SaaD Migration Survey, typical IT operations do not use 25% of the software they purchase. And a study by Flexera Software found that 93% of organizations have some shelfware, with more than a third wasting at least 21% of their software spending on neglected software. To put into context how prevalent the “shelfware” problem has become, Gartner predicts that by 2022, the global information security spending will exceed USD 170 billion.

But it doesn’t have to be that way. Here are some solid ways to prevent software purchases from becoming shelfware:

• Identify your needs and goals:

Before making any software purchase, it’s crucial to identify your organization’s needs and goals. You should have a clear understanding of the problems you’re trying to solve, and the specific features and functionality required to address those issues.

• Evaluate the software:

Once you’ve identified your needs and goals, it’s time to evaluate the software. It’s essential to do your due diligence and research the software thoroughly. Look at customer reviews, case studies, and other resources to understand how the software performs in real-world scenarios.

• Test the software:

Before making a purchase, test the software to ensure it meets your needs and requirements. Most software vendors offer free trials or demos, and taking advantage of these options can help you get a better understanding of the software’s capabilities.

• Involve all stakeholders:

When evaluating and testing software, it’s crucial to involve all stakeholders. This includes IT staff, end-users, and decision-makers. Gathering feedback from everyone who will use the software can help ensure that the software meets everyone’s needs and requirements.

• Create an implementation plan:

Once you’ve selected a software solution, it’s essential to create an implementation plan. This plan should include timelines, milestones, and responsibilities for everyone involved in the implementation process. A well-structured plan can help ensure a smooth rollout and adoption of the software.

 

The above are great ways to plan ahead for software adoption. But what happens post-purchase if, fairly shortly down the road, the new software proves to be unuseful – despite all the thought that went into the purchase? A solid solution (which may sound simple, but is often overlooked) is to renegotiate or terminate software contract agreements.

When doing so, it’s important to have detailed usage data in hand. Organizations should continually assess how exactly software is being used across the company. Then, a business can negotiate contracts at renewal time to bring down the number of licenses they hold. Organizations indeed often fail to terminate licenses because they don’t have a formal workflow in place to make adjustments when a user leaves the organization or changes responsibilities.

Prepare in advance for renewals, and begin conversations with sales reps early. The earlier you let a vendor know that you’d like to reduce the price of a contract because of lowered usage needs, the better the chance they’ll be able to help.

Purchasing software from a company that you know has a very flexible pay-per-user plan, such as HackNotice, a threat awareness service, is also key. The more committed a software provider is to doing per-user, flexible contracts, the better off you’ll be. And that is perhaps the best solution. 

By adopting these proactive and post-purchase approaches, organizations will be able to reduce their shelfware load and save a lot of money. Purchasing software is supposed to help, not hinder, the growth of a business. Make sure your software works for you, and don’t stand idly by if it starts accumulating (expensive) dust. 

 

Sources:

1. Drinkwater, Doug. “How to Stop Wasting Money on Security Shelfware.” CSO Online, June 14, 2017. https://www.csoonline.com/article/3200724/how-to-stop-wasting-money-on-security-shelfware.html.
2.  Gartner. “3 Best Practices to Avoid Costly Shelfware in Your SaaS Deal,” n.d. https://www.gartner.com/en/documents/3979046.
3.  “Flexera Releases 2020 State of the Cloud Report,” n.d. https://www.flexera.com/about-us/press-center/flexera-releases-2020-state-of-the-cloud-report.
4.  Heard, Chris. “5 Steps to Prevent and Avoid Shelfware.” Olive Technologies, August 12, 2022. https://olive.app/blog/avoid-shelfware/.
5.  Joch, Alan. “4 Secrets for Eliminating Shelfware.” Technology Solutions That Drive Business, May 6, 2020. https://biztechmagazine.com/article/2016/08/4-secrets-eliminating-shelfware